Chinese automaker BYD is evaluating the possibility of bringing its new, low-cost electric vehicle – the “Racco” – to Europe. The car, currently designed as a kei car for the Japanese market, could disrupt the city car segment if adapted for European regulations.
The Rise of Ultra-Compact EVs
BYD’s interest comes as Europe debates new vehicle classifications aimed at making small electric cars more affordable. The proposed ‘E-car’ category would allow for streamlined production and lower pricing, which is exactly what BYD is targeting. The firm has made clear its intention to compete across all vehicle segments, from the smallest ‘A’ category to larger ‘F’ class cars.
BYD’s Racco: Specs and Strategy
The Racco is a compact, boxy supermini designed for urban driving. It features a smaller 20kWh battery than BYD’s existing Dolphin Surf model (30kWh), delivering an estimated 112 miles (WLTP) of range. Despite the smaller battery, it supports fast 100kW charging, potentially adding 80% charge in around 20 minutes.
Why this matters: The Racco would likely be positioned below the Dolphin Surf, which currently starts at £18,650 in the UK. BYD aims to undercut even this price, making it one of the most affordable EVs on the market.
The EU Regulation Factor
BYD executive vice president Stella Li stated that the car’s European viability depends on regulatory approval for the ‘E-car’ category. European automakers have been pushing for these rules to lower production costs and boost demand for small EVs.
The success of this move will hinge on whether the EU adopts the proposed classification. If so, the Racco could become a major player in the budget EV space, challenging existing city cars and expanding EV accessibility to a wider audience.
The Racco represents a clear trend towards more affordable, compact electric vehicles – and BYD is positioning itself to lead that charge.
